Oxagon is getting SAR 600 mn facility for industrial gases production, distribution

AHG to produce industrial gases in Oxagon: Abdullah Hashim Industrial Gases & Equipment (AHG) will develop a SAR 600 mn industrial gases production and distribution facility in Neom’s industrial city Oxagon under a land lease agreement, according to a statement from Neom. The multi-phase facility will produce green oxygen, nitrogen, argon, and hydrogen to support renewable energy transition goals, the statement read.

The first phase of the project will set up basic industrial infrastructure, warehousing, and distribution capabilities. AHG is scheduled to break ground on the first phase in February, with operations slated to kick off in late 2026. Subsequent phases are expected in 2028.

The pitch: Demand for industrial gases in Oxagon is expected to grow as the city’s Industrial Quarter attracts more and more tenants. AHG’s facility will help localize production and distribution, which will reduce transportation costs for facilities in Oxagon and curb emissions from long-distance imports. AHG will also be poised to ramp up supplies of industrial gases to contractors working on Neom’s construction.

Oxagon is apparently going forward as planned, unaffected by the ongoing recalibration of Saudi’s gigaprojects, especially Neom, which has reportedly been undergoing a comprehensive review for months.